@brainbomb--"Someone please explain what the money from the fines goes too."
The money isn't really the issue. Participation is the issue.
One of the basic goals of the health insurance system is to make healthcare affordable for people who really need it. That means passing on some of those costs to others, by putting low-risk and high-risk people in the same insurance pool. The insurance companies need to charge enough to cover the average cost of care (and then some, presumably). But the healthiest people would rationally pay less without insurance than they would with insurance; unless they're risk-averse, they'll exit the insurance pool. But then the average cost of coverage for the pool goes up, so the insurance companies need to raise rates, which leads to more people leaving...and the vicious cycle renders the insurance system useless for achieving one of its basic goals.
The fine is meant to make sure people participate who wouldn't otherwise participate, so that risk pooling can function.
Yes, this is a miserable kludge to make up for the lack of single-payer healthcare or other similar system. Yes, it's also rather a perversion of how insurance typically works.
@Psilosha, you're not wrong that misuse of government is extremely dangerous (one needs only look to e.g. Stalin and Mao for examples), but determining what is correct use of government is extremely complicated and contentious, and there are degrees and degrees of misuse, not all of which can be fairly lumped under the "greatest threat to humanity" label you'd like to use. For example, "misusing" government by taxing for mandated public education is a little different from "misusing" government to engineer famines that kill 50 million people. So until you inject a little more nuance into your approach, you're not really grappling with that issue in a useful way.